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Organic Law For The Defense Of Labor Rights

Original Language Title: Ley Orgánica para la Defensa de los Derechos Laborales

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ORGANIZATION LAW FOR THE

RIGHTS DEFENSE

LABOR

Year IV-Nº 797

Quito, Wednesday 26    September 2012

Value: US$ 1.25 + VAT

ING.   HUGO ENRIQUE DEL POZO

BARREZUETA DIRECTOR

Quito: Avenida 12 de Octubre

N 16-90 y Pasaje Nicolás Jiménez

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1500 copies -- 8 pages

www.registroficial.gob.ec

At the service of the country since July 1, 1895

SECOND SUPPLEMENT

2 -- Second Supplement -- Official Record No. 797 -- Wednesday, September 26, 2012

Second Supplement -- Official Record No. 797 -- Wednesday, September 26, 2012 -- 3

REPUBLIC OF THE REPUBLIC

Office No. T. 6465-SNJ-12-1121 Quito, 25 September 2012 Engineer HUGO DEL POZO BARREZUETA Director of the Official Register In your office Of my consideration:

Deputy to the present will find copy of the trade SAN-2012- 1162 of 25 September 2012, sent by Dr. Andres Segovia, Secretary of the National Assembly, in relation to the veto proposed by the Constitutional President of the Republic to the Draft Organic Law for the Defense of Labor Rights, in which it consists of The plenary session of the National Assembly did not rule on this veto.

In view of the fact that the plenary session of the National Assembly did not rule on the partial veto, within thirty days of the third paragraph of Article 138 of the Constitution of the Republic, it accompanied the text of the Draft Law Organic for the Defense of Labor Rights, in which the objections raised to the indicated project by the Constitutional President of the Republic are incorporated, so that, according to the fourth indent Article 138 of the Constitution of the Republic, publishes it as Law of the Republic in the Register Officer.

For the purposes of the above, I also refer you to the trade No. PAN-FC-012-1138 of 31 July 2012, sent by the architect Fernando Cordero Cueva, President of the National Assembly and the trade No. T. 6465-SNJ-12-982 of 24 August 2012, sent by the Constitutional President of the Republic, in which the objections that he made to the bill in question are contained. Intently, f.) Dr. Alexis Mera Giler, LEGAL SECRETARY Annex as indicated by C.c. Arq. Fernando Cordero Cueva, PRESIDENT OF THE NATIONAL ASSEMBLY

REPUBLIC OF ECUADOR NATIONAL ASSEMBLY

Office No. PAN-FC-012-1138 Quito, July 31, 2012 Mr. Economist Rafael Correa Delgado CONSTITUTIONAL PRESIDENT OF THE REPUBLIC OF ECUADOR In his office Mr. President: The National Assembly, in accordance with the powers conferred on him The Constitution of the Republic of Ecuador and the Organic Law of the Legislative Function, discussed and approved the project of ORGANIC LAW FOR THE DEFENSE OF LABOR RIGHTS, urgent in economic matters. In such a virtue and for the purposes provided for in Articles 137 of the Constitution of the Republic of Ecuador and 63 of the Organic Law of the Legislative Function, I refer to the authentic and certified copy of the text of the bill, as well as the certification of the Secretary General of the National Assembly, on the dates of the respective debates. Intently, f.) FERNANDO CORDERO CAVE, President.

REPUBLIC OF ECUADOR NATIONAL ASSEMBLY

CERTIFICATION

In my capacity as Secretary General of the National Assembly, I certify that the project of ORGANIC LAW FOR THE DEFENSE OF RIGHTS WORK, was discussed and approved on the following dates: FIRST DEBATE: 20-July-2012 SECOND DEBATE: 31-July-2012

Quito, July 31, 2012 f.) DR. ANDRES SEGOVIA S., Secretary General It is a faithful copy of the original. Quito, September 25, 2012. f.) Ab. Oscar Pico Solorzano, DEPUTY NATIONAL SECRETARY OF THE PUBLIC ADMINISTRATION.

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PRESIDENT OF THE REPUBLIC OF THE

ECUADOR Office No.T. 6465-SNJ-12-1112 Quito, 24 September 2012 DoctorAndres Segovia SalgadoSECRETARY GENERAL OF THE NATIONAL ASSEMBLY Present Of My Consideration: By Trade No. T. 6465-SNJ-12-982 of 24 August 2012, received by the National Assembly on the same day, the Constitutional President of the Republic, referred to the President of the National Assembly, his objections to the draft Organic Law for Defense of the Labor Rights, for their treatment, in accordance with Articles 137 and 138 of the Constitution of the Republic, and 63 and 64 of the Organic Law of the Legislative Function. In this regard, I ask you to be certified as follows:

1. If the debate referred to is the third

article 138 of the Constitution of the Republic, for the analysis of the partial objection presented by the Constitutional President of the Republic; and,

2. If in that debate the National Assembly was raided

the text proposed by the Constitutional President of the Republic, or if, on the contrary, was ratified in the text originally sent by the National Assembly.

In any case of the two cases, I ask you to inform me if such raids or ratification, were total or partial. Intently, f.) Dr. Alexis Mera Giler, LEGAL SECRETARY Is a copy of the document that is based on the file of the National Legal Secretariat.-LO CERTIFICÓ:

Quito, September 25, 2012 f.) Ab. Oscar Pico Solorzano, DEPUTY NATIONAL SECRETARY OF PUBLIC ADMINISTRATION

REPUBLIC OF ECUADOR NATIONAL ASSEMBLY

Office No. SAN-2012-1162

Quito, September 25, 2012 Mr. Dr. Alexis Mera Giler National Secretary Legal Presidency of the Republic City Of My Consideration: In attention to your trade No. T. 6465-SNJ-12-1112, September 24, 2012, related to the partial objection to the Draft Organic Law for the Defense of Labor Rights, let me point out the following:

1. The plenary session of the National Assembly, in session on September 20, 2012, met and debated the partial objection to the Draft Organic Law for the Defense of Labor Rights, submitted by trade No. T. 6465-SNJ-12-982, dated August 24, 2012.

2. The Assembly of the National Assembly did not express itself

for the raid on the objection, nor did it express itself for the ratification of the text of the Draft Organic Law for the Defense of Labor Rights, approved in the second debate by the Assembly. National.

Particular that I place in your knowledge, in compliance with the provisions of article 138 of the Constitution and 64 of the Law of the Law of the Legislative Function. Intently, f.) DR. ANDRES SEGOVIA S., Secretary General It is a copy of the original.-LO CERTIFICÓ:

Quito, September 25, 2012 f.) Ab. Oscar Pico Solorzano, DEPUTY NATIONAL SECRETARY OF PUBLIC ADMINISTRATION

Second Supplement -- Official Registration No. 797 -- Wednesday, September 26, 2012 -- 5

REPUBLIC OF THE REPUBLIC

THE PLENO

CONSIDERING:

What, according to the Article 34 of the Constitution of the Republic, the right to social security is an inalienable right of all persons, and a primary duty and responsibility of the State; What, as provided by Article 37 (1) and (3) of the Constitution of the Republic, the State will guarantee elderly people, among others rights, free and specialized health care, as well as free access to medicines, and universal retirement; What, by mandate of Articles 367 and 368 of the Constitution of the Republic, the social security system is public and universal, cannot be privatized and must address the contingent needs of the population, for which the State will regulate, regulate and control activities related to social security; What, according to the number 2 of the Article 285 of the Constitution of the Republic, the tax policy will promote redistribution and will stimulate employment; That, according to Article 33 of the Constitution of the Republic, labor is a right and a social duty, and an economic right, a source of personal fulfilment and the foundation of the economy, to which the State must ensure that workers are fully respected, among other things, for their dignity, decent life, remuneration and fair remuneration; What, as provided by Article 104 of the Labour Code, for the determination of annual earnings of the respective companies, the statements or liquidations which will be taken as the basis make for the effect of the payment of income tax; What, despite the fact that there is the attribution to impose penalties in case of non-compliance in the payment of the profits, as provided for in Article 107 of the Labour Code, and the the ability to consider related companies as a single, as stated in Article 103 of the same code, failure to avoid the breach of the obligation referred to above by the existence of front liners; What, They also tend to default on their tax obligations to the detriment of the determination of the Workers ' profits;

What, the Ecuadorian Social Security Institute is not able to collect outstanding payment values, as there are cases where employers tend to hide their assets and income. to default to the payment of utilities;

What, as a result of the above, the employers ' unreal statement prevents the collection of what the workers are entitled to, by way of profit; What, there are cases that neither even when workers manage to obtain favorable resolutions of justice, they can execute In order to receive what is due to them; What, in this area, by express delegation of the labor law, it becomes necessary the collaboration of the tax collection entity, to know the basis on which the workers will be able to claim their profits; What, it is necessary to establish the mechanisms through which the State can make effective the responsibility of the employers, who exceed the measures taken by them to evade their responsibilities; What, Article 178 of the Tax Code states that the third party exclusionary suspends the co-active procedure; What, must be prevented from suspending execution, when dealing with the avoidance of employer obligations; What, Article 269 of the Labor Code states that employees domestic workers are entitled to one day off every two weeks of service; That, such a provision is anachronistic, establishes unjustified inequality and violates the rights of domestic workers; What, Article 155 of the Code of Work establishes the obligation to have a nursery, in the case of those companies have 50 or more workers; What, in this same article is foreseen as an exception to the above mentioned, the possibility of reducing the working mothers ' day to 6 hours a day, during the 9 months after the birth, when the companies do not have the day care, which saves, only in this case, their right to breast-feeding; What, this exception is unfair, because the mothers who work in places where they do not have a nursery, will only receive a benefit for 9 months, in defence of their right to breast-feeding, but without considering their right to access to child care facilities; What, in the first case, in which companies have the infrastructure, mothers benefit from child care, but, in the opposite case, a special day is fixed, which saves the the right to breast-feeding; What, in this context, the above provision should be clarified, in order to establish precisely, the rights of breastfeeding and access to child care, for the benefit of all mothers;

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What, the two rights must be granted concurrently, under conditions set by the Act; What, May 7, 2011, the citizenry ruled in favor of the prohibition of the business dedicated to gambling; That, in such a situation, these businesses were forced to conclude their operations; What, the owners of such businesses do not have met their labour obligations, which has left many workers without payment of their the purposes of this Regulation,Commission shall, in accordance with Article 4 (2) of Regulation (EU) No No 4, provide the Commission with the following information: In the light of the special circumstances which led to the closure of the business, State must pursue the reimbursement of what is paid in the face of the non-compliance of the employers; and the attribution conferred by Article 120 (6) of the Constitution of the Republic, issue the following:

ORGANIC LAW FOR THE DEFENSE OF LABOR RIGHTS

Article 1.- The institutions of the State that by law have a coactive jurisdiction, in order to make the collection of their loans effective, They will be able to exercise their action not only against the principal, but against all those required by law, including their older heirs who would not have accepted the inheritance with the benefit of inventory. In the case of legal persons used to defraud (abuse of the legal personality), it will be possible to reach the last level of property, which will always fall on natural persons, who will respond with all their patrimony, whether or not residents or domiciled in Ecuador. Precautionary measures may be disposed of against the persons referred to in the preceding paragraph and their property. Likewise, they may, in a reasoned manner, order in respect of goods which, in the name of third parties, exist indications that are of public knowledge of the property of the referred subjects, which must be stated in the process and as long as the obligation The principal does not comply with his obligation. Equal attribution shall be given to the work authorities or the judges of the work in order to execute the judgments given in the collective or individual conflicts of work, in their order. Article 2.- Add in Article 178 of the Tax Code, a second indent with the following text:

" In the case of the seizure of property, in use of the attribution referred to in Article 1 of the Law for the Defense of the Labor Rights, the exclusive terceria will not suspend the execution, but from the fact that the Tribunal of the Contentious Tax so orders it, if there are sufficient indications of the illegitimacy of the embargo. "

Article 3.- In Article 104 of the Labor Code, add the following paragraph:

" In all processes that follow the Internal Revenue Service, which have been started for tax collection, it must be notify the respective labor authorities, with the determination of the utilities, information that will serve as the basis for the administrative and/or legal decisions, which will be subsequently made by those authorities. "

Article 4.- Replace the third paragraph of Article 155 of the Labour Code, by the following:

"During the twelve (12) months after delivery, the nursing mother's day will last six (6) hours, in accordance with the need of the recipient."

Article 5.- Repeal Article 269 of the Labor Code. Article 6.- Add the following item numbered after Article 268 of the Labor Code:

"Art. ....- Employees and domestic workers are guaranteed the same benefits of any other worker in general, having their working days and rest be five days a week or forty hours on the day and Saturday and Sundays shall be of rest. If, by reason of the circumstances, the work is not interrupted in such days, another equal time of the week shall be designated for the rest, by agreement between the employer and the workers. "

Article 7.- Add an Innumbered Article following Article 36 of the Civil Code, which reads as follows:

"Art. ....- constitutes abuse of the right when its holder unreasonably exceeds and in a manifest manner its limits, such that it is perverted or deviated, deliberately and voluntarily, the purposes of the legal order. "

GENERAL CHOICE The Ecuadorian State shall exercise the right of repetition in accordance with Art. 11 of the Constitution of the Republic. TRANSITIONAL PROVISIONS: FIRST.- The Ecuadorian State, through the Ministry of Labor Relations, and with the privileges

Second Supplement -- Official Registration No. 797 -- Wednesday, September 26, 2012 -- 7

granting you this law, will proceed to initiate the corresponding co-active trials so that within a maximum of 60 days, proceed the seizure of the assets of the obligors of the companies and persons linked to the employers of the casinos and other gaming rooms. Immediately, it will start the remate process. This was done by the Ecuadorian State, through the Ministry of Labor Relations in an exceptional manner, and for this only occasion, prior to summary report, with liquidation and resolution carried out by the respective Regional Director of Labor jurisdiction, shall pay the compensation to which the employers of the casinos and other gambling rooms are obliged to pay, in favour of their employees, on the occasion of the completion of their activities, in the provision of the popular mandate of 7 May 2011, for which business was prohibited dedicated to gambling. Once the payment has been made to each worker, the Ministry of Labor Relations will be subrogated in full right as a creditor of the obligations cancelled to the workers and will continue with the co-active trials initiated to collect the values paid to workers, having for the effect, the powers mentioned in Article 1 of this Law. SECOND: For this time, employers who have not affiliated their workers with a dependency relationship in the last three (3) years, so that the employment relationship is not maintained at present, will not be subject to sanction and will be able to Member States shall, within the period of six (6) months from the date of issue of this Law, pay the corresponding values of the employer's and the worker's contribution plus the interest equal to the conventional maximum. allowed by the Central Bank of Ecuador, to the date of settlement of the arrears, without surcharges for fines, additional increases or any nature, without prejudice to the employer responsibility to be generated.

For the calculations, the percentages corresponding to health insurance and occupational risks shall be excepted.

The IESS may grant time-limits, in accordance with the resolution referred to in the case by the IESS Board of Directors, for the payment of the total debt calculated as indicated in this transitional provision. The value of the capital owed will be added to the financing, applying the same rates as those of the operating room loans.

This provision will also apply to all employers against whom the IESS has issued credit and has not yet been cancelled, in order to proceed with its payment. This provision shall not apply, where judgments are pending in which the employment relationship is discussed, unless the withdrawal or the break-in in such trials is authorized in advance. REFORM PROVISION: FIRST.- Add a third indent in Article 94 of the Social Security Act, with the following text:

"This provision shall be understood, without prejudice to the first paragraph of Article 96."

Given and subscribed to the headquarters of the National Assembly, located in the Metropolitan District of Quito, Pichincha Province, at the thirty-one day of the month of July of two thousand twelve. FERNANDO CORDERO CAVE President DR. ANDRES SEGOVIA S. Secretary General

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